Xiaomi’s bold foray into the electric vehicle (EV) market is gaining serious momentum, with over 120,000 pre-orders secured for its SU7 electric SUV within just 48 hours of launch. The staggering demand signals a formidable new challenger to Tesla’s dominance in China’s fiercely competitive EV sector.
Table of Contents
Why Xiaomi’s SUV Is Shaking Up the Market
1. Competitive Pricing & Features
✔ Starting at ¥259,900 ($35,600) – undercutting Tesla Model Y by 15%
✔ 700km (435-mile) CLTC range on single charge
✔ Xiaomi HyperOS integration – seamless smartphone-to-car connectivity
2. Record-Breaking Pre-Orders
- 50,000 orders in first 24 hours
- 70% from first-time EV buyers (Xiaomi data)
- Delivery timelines extended to Q2 2026 due to demand
3. Tesla’s Response
- Price cuts on Model Y in China (now from ¥299,900)
- Accelerated Cybertruck deliveries in Asia
- New FSD trial offers to retain customers
Market Impact & Industry Reactions
Consumers
“Xiaomi’s tech ecosystem won me over,” said a Beijing-based pre-order customer
Analysts
“This could redefine brand loyalty in EVs,” – Bernstein’s auto analyst
Competitors
- BYD launching Song L Pro to counter SU7
- NIO offering free battery upgrades for older models
What’s Next?
- December 2025: First test drives in Shanghai/Guangzhou
- Q1 2026: European launch plans expected
- Potential IPO for Xiaomi Auto division
Know more about “Xiaomi’s Electric SUV Sees Explosive Demand”:
Which Xiaomi electric SUV is experiencing explosive demand?
The newly launched Xiaomi YU7 electric SUV is seeing exceptionally high demand.
How quickly did the Xiaomi YU7 receive orders after its launch?
The YU7 received an astonishing 200,000 pre-orders in the first three minutes and 289,000 orders within the first hour of going on sale.
How does the YU7’s initial demand compare to Xiaomi’s first EV, the SU7 sedan?
The YU7’s initial orders are more than three times the level achieved by the SU7 sedan in its first hour of sales.
What is the starting price of the Xiaomi YU7 electric SUV? The YU7 starts from 253,500 yuan (approximately $35,364 USD).
How does the YU7’s price compare to the Tesla Model Y in China?
The YU7 is priced almost 4% below Tesla’s Model Y in China.
What is the estimated waiting time for a Xiaomi electric car (SU7 or YU7)?
For the SU7 sedan, the waiting period on Xiaomi’s website currently indicates 33 weeks (around 8 months). For the YU7, due to the high demand, significant wait times are also expected.
What are Xiaomi’s production targets for its electric vehicles in 2025?
Xiaomi has raised its 2025 delivery target from 300,000 to 350,000 electric cars (for both SU7 and YU7 combined).
How many electric cars did Xiaomi deliver in 2024? Xiaomi delivered over 135,000 SU7 units in 2024.
What factory strategy is Xiaomi employing to meet demand?
Xiaomi plans to operate its Beijing factory on a double-shift model (16 hours daily) and is expanding its production capacity with a second phase to reach a cumulative annual production capacity of 300,000 to 350,000 vehicles.
What features contribute to the YU7’s appeal?
The YU7 offers competitive pricing, superior range (up to 835 km CLTC), fast acceleration (0-100 km/h in 3.23 seconds for top variant), advanced tech (NVIDIA DRIVE Thor chip, LiDAR), 800V fast-charging platform, and integration with Xiaomi’s “People-Car-Home” ecosystem.
How is the explosive demand impacting Xiaomi’s stock price?
The surge in demand for the YU7 sent Xiaomi’s Hong Kong-listed shares soaring, reaching an all-time high and pushing its market capitalization above $200 billion.
Is Xiaomi’s entry into the EV market causing a price war in China? Yes, Xiaomi’s aggressive pricing strategy and the YU7’s competitive price point are further intensifying the EV price war in China.
Are there concerns about scalpers due to the high demand?
Yes, reports indicate the emergence of scalpers on secondary platforms, offering early YU7 orders at markups. Xiaomi has stated orders cannot be transferred to curb this.
Does the YU7 offer a significant range on a single charge?
Yes, the base YU7 offers a CLTC-rated range of 835 km.
What is Xiaomi’s long-term goal for its EV business profitability?
Xiaomi expects its EV unit to achieve profitability in the second half of 2025, which would be one of the fastest in the automotive sector.
How does Xiaomi leverage its smartphone business for its EVs?
Xiaomi leverages its smartphone-scale supply chain efficiencies for cost savings and integrates its EV with its vast ecosystem of IoT-connected devices, offering a “People-Car-Home” experience.
What kind of advanced driver-assistance systems (ADAS) does the YU7 have?
The YU7 features a light detection and ranging system (LiDAR) and an NVIDIA DRIVE Thor chip (700 TOPS) for advanced driver-assistance technology.
Is Xiaomi planning to launch other EV models soon?
Yes, besides the SU7 sedan and YU7 SUV, Xiaomi also plans to launch an EREV SUV (Extended Range Electric Vehicle) by 2026.
Has Xiaomi faced any challenges with its EV launch, despite the demand?
Yes, earlier with the SU7 Ultra, there were customer protests over initial claims of power output that later led to compensation. This highlights the pressure on the company to meet high expectations.
What is the overall market impact of Xiaomi’s entry into the EV sector?
Xiaomi’s entry and rapid success are seen as a game-changer in the Chinese EV market, challenging established players like Tesla and BYD and intensifying competition, while proving the company’s strong brand power and execution capabilities.